fuels workshop case study #1...-early adopters wishing to help create a market for reduced ghg...

© S

tephan G

ladie

u - T

ota

l

FUELS WORKSHOP CASE STUDY #1:

DEVELOPING AND

COMMERCIALIZING

RENEWABLE BIO-JET FUEL

Vineet Rajgarhia

VP Biotechnology R&D

Total New Energies, USA

AGENDA

A little on Total, SA and Total New Energies

The Energy mix expected to meet the need

of the world in 2035 and GHG challenges

Total’s commitment to better energy and our

choice of Solar and Biotechnology

Our partnership with Amyris and Renewable

Bio-Jet Fuel

Development of Farnesane as a renewable

jet fuel

o Jet Fuel

o Certification Process

o Challenges of Developing competitor to

fossil jet fuel

o Current Status

o Future outlook

2 Commercializing Industrial Biotech_Sept. 2015

LNG carrier

Offshore platform

Liquefaction plant

Onshore facility

Oil tanker

Refinery

Specialty chemicals

Petrochemical complex

Oil depot

Service station

Solar panels

Lubricant blending unit

Exploration & Production and Gas & Power

Refining & Chemicals and Trading & Shipping

Marketing & Services and New Energies

NEW ENERGIES IN OUR GLOBAL

AND DIVERSE OPERATION


A Total Primer Upstream Refining & Chemicals Marketing & Services

OUR KEY INDICATORS IN 2014

4

MORE THAN 700 PRODUCTION

FACILITIES

$12.8 bn*

ADJUSTED

NET INCOME

* €9.7bn

$7.39 bn

ALLOCATED

TO R&D

between 2015

and 2019

$236.1 bn*

REVENUE

* €177.7bn

$26.4 bn*

ORGANIC

INVESTMENT

* €19.9bn

EMPLOYEES

100,307

* Employees on the payroll

as of Dec. 31, 2014

Commercializing Industrial Biotech_Sept. 2015

A Total Primer Upstream Refining & Chemicals Marketing & Services

OUTLOOK FOR ENERGY DEMAND

5

+ =

2010

2035

POPULATION GROWTH billion people

ECONOMIC GROWTH $ trillion in 2011

(GDP in purchasing power parity)

HIGHER ENERGY DEMAND million barrels of oil equivalent per day

7 75.2 265

8.5 175.7 349

Sources: UN, IMF, Total, IEA - January 2013


OUR VISION OF GLOBAL ENERGY DEMAND IN 2035

6

32%

22%

27%

6% 10% 2%

1%

2010 28%

25%

21%

6%

11% 3% 6%

2035

Oil Natural Gas Coal Nuclear Biomass Hydro Solar, wind, other

• Fossil based energies still represent 74% of energy supply in 2035

• Gas to become the second largest energy source before 2030

• Very strong growth of new energies, in particular of solar energy and biomass


TOTAL’S COMMITMENT TO BETTER ENERGY

Commercializing Industrial Biotech_Sept. 2015 7

25

30

35

40

2005 2010 2015 2020 2025 2030

IEA 450 Scenario

IEA Current Policies Scenario

3.8 Gt

13.8 Gt

Under the IEA 450ppm scenario renewable energy is the 2nd most important way to reduce CO2. Maintaining “status quo” (redline in graph) inadvisable option

Source : International Energy Agency (IEA) World Energy Outlook 2010

17%

9%

24%

50%

Energy Efficiency

Renewable & Biofuel

Nuclear

Carbon Capture and Storage (CCS)

Global Climate Change - CO2 emissions (Gt)

TOTAL’S COMMITMENT TO BETTER ENERGY:

TWEAKING INTERNAL OPERATIONS AND VIA INNOVATION

Successful

Miaden Flights

for Biojet Fuel Flagship Solar

Projects in the

United States

Christophe de Margerie,

Our late Chairman & CEO,

Total

*CSR = corporate and

social responsibility


THE VISION CONTINUES WITH NEW TOTAL

LEADERSHIP


COMMITMENT TO BETTER ENERGY VIA INNOVATION

10

A leader in solar power

• Be a global leader -

SunPower, >66% ownership

• Technological leadership

in solar through cutting-edge

R&D

and manufacturing

excellence

• Be present across the

photovoltaic value chain

Leadership in solar energy and biotechnologies

to address Total’s energy & chemical markets

Produce bio-molecules for Total markets

Differentiate through

technology development –

accelerate innovation via

partnership model

Use Total’s existing capex

infrastructure – find

synergies in Total markets

With an environmentally and

socially sustainable approach


VISION: FROM CO2 TO PRODUCTS

● Back in 2010, strategic decision to focus on plant-to-sugar-to-commodities:

- Step 1 - Hydrocarbons from sugars

- Step 2 - Lignocellulose to access to non food/feed and inexpensive sugars

TOTAL opted for an open-innovation model and has established a collaborative

network in each segment of the value chain

Lipids,

Oils Novogy

Gevo, TWB

Alcools


TOTAL-AMYRIS PARTNERSHIP SINCE JUNE 2010

● Develop the whole value chain integrated from biomass to finished products

Biomass Fermentable

raw materials

Molecules

CiHj

Products

Downstream

Processing Fermentation Pre-treatment

Bio-engineering of

micro-organisms

R&D network

Synthetic biology

1st generation in

Brazil on sugar cane

Leading to 2nd

generation

Feedstock sourcing

Track record for

strain improvement

Scale-up and

industrial chemistry

Fermentation and chemical processes

Fuels Special fluids

Lubricants Chemicals

Competitive

molecules

Access to markets

Trading & marketing

● Strategic alignment: Total has major ownership of Amyris capital

The development of a renewable bio-jet fuel was the first joint program


RENEWABLE JET FUEL OPPORTUNITY


WHAT IS A JET FUEL?

● Most widely used jet fuel: Jet A /

A-1 for commercial civil aviation

- Defined and specified in ASTM

Standard D1655

- Complex mixture of hydrocarbons

and varies depending on crude

source

- Performance specification rather than

a compositional specification.

- Largely relied on accumulated

experience

- kerosene cut between lighter

gasoline and heavier diesel cuts

Jet A / A-1 is a distribution of C8 to C16 hydrocarbons

Source : Edwards 2001,

Briker 2001 and Bacha 2001


KEY SPECIFICATIONS OF JET FUEL

● 21 performances and properties must be met

● This allows a strict control on the quality

- Flash point (prevention of explosions in fuel handling and tanks)

- Energy content (aircraft range)

- Freeze point (ability to pump fuel at low temperature)

- Thermal stability (prevention of fuel system / nozzles clogging or fouling)

- Viscosity (ability to spray fuel and to relight at high altitude)

- Lubricity (ability to lubricates fuel system / engine control)

- Combustion (prevention of particles formation)

- Material compatibility (prevention of the degradation of metals, polymers

and elastomers the fuel is in contact with)

Jet A / A-1 is controlled by feedstocks, processes and properties that guarantee

safe and satisfactory operations of aircraft and engines


JET FUEL MARKET: STEADY GROWTH FOR THE NEXT 15

YEARS

Demand for air transport will grow x2 in the next 15 years, driven by Asia

Steady growth rate of +1.6%/year

Source : Passengers World Traffic (ICAO 2013)

North America 29 %

Latin America

5%

Europe 21%

Middle East 6%

Pacific Asia 30%

RoW (FSU+Africa)

4%

Russia 5%


CHALLENGES TO DEVELOPING AND

COMMERCIALIZING RENEWABLE JET FUEL


FOUR CONSTRAINTS TO COMMERCIALIZE RENEWABLE

JET FUEL

● Safety: renewable jet fuel has to be innocuous to aircraft operations

- Performances similar, or better, to fossil jet fuel in extreme environment

- Compatibility with tanks, engine, engine and fuel systems

● Endurance: yesterday and tomorrow aircrafts operate on the same fuel

- Life span of an aircraft (therefore the engines) is 40 to 50 years

● Drop-in: handling, supply and blending of alternative jet fuel should be

undistinguishable from jet fuel

● Price: renewable jet fuel has to be cost competitive with fossil jet fuel

- Jet fuels costs correspond to 30 - 55% of airlines’ operating costs

Airlines, engine and aircraft OEMs* and jet fuel suppliers prefer a renewable,

sustainable and drop-in jet fuel available in commercial quantities

*OEMs: Original Equipment Manufacturers


19

CURRENT STATUS FOR COMMERCIALIZATION: PRODUCTION

PROCESS AT SCALE, R&D ON-GOING

● Fermentation

- Microbe-catalyzed conversion of sugar: key is the

development of a farnesene producing yeast

- Amyris farnesene plant with a capacity of up to 50 million

liters per year at target efficiency in Brotas, Brazil

- Fermentation process demonstrated on three continents:

Europe, North America and South America

● Downstream Processing

- Combination of hydro-processing and

separation operations

- Process capabilities on a global basis through

Contract Manufacturing Organizations

Amyris Farnesene plant up and running >2.5 yrs; we were able to address one

key aspect for the certification process

TOOK A VILLAGE TO RAISE THIS CHILD

At scale tests confirmed similar performances as with fossil jet fuel

● Successful engines and combustor rig tests

- Snecma SaM 146 and P&W 615F on 10% and 20% blends

- No deviation between blends and reference jet fuel

(performance, operability, emissions, post test inspection)

● Validation of the use of farnesane on Auxiliary Power Unit

- Tests performed by Honeywell on 10 and 20% blends

- Atomization & ignition and APU cold and altitude starting OK

● Lufthansa monitored better emission performances with

farnesane blends on commercial engine

● Successful flight tests with A321 and Etihad B777

- Engine fueled with 10% blend performed “normally”


COMPLETION OF THE ASTM CERTIFICATION IN JUNE 2014

● Formal ASTM

certification is a 2-step

ballot process (>2

months)

- Research report

- Revised ASTM D7566 specifications

● Unanimity is required

to pass (~600 voters

are allowed)

Commercial flights on 10% blend are allowed since June 2014


NEW CHALLENGES: COMMERCIALIZATION AND

PRICE REDUCTION


INDUSTRIAL AND COMMERCIAL OPERATIONS STARTED

● Aviation grade farnesane is produced reliably at

commercial scale

- Amyris facility in Brotas, Brazil with a capacity up to 50

million liters per year

- Successful demonstration of the portability of the process

● Compliance with global industry sustainability standards

- Potential net life cycle GHG emissions: 82% reduction compared to fossil kerosene

- Farnesene plant received the first RSB (Roundtable on sustainable Biomaterials)

certification

Farnesane is available and can be delivered to the wing globally, while

respecting aviation industry standards

● “Lab’line for the future” with Air France

- 1 year long program on Toulouse-Paris route with 1

commercial flight / week (A321 equipped with CFM56

engines)

- Implementation of a stringent monitoring protocol


TRANSITION FROM DEMONSTRATION TO COMMODITY

MARKETS

Developing Markets while reducing the price to be competitive with other

alternatives and also fossil derived Jet Fuel

● Improve competitiveness through innovation and quality on the whole value chain

● In the meantime, define local commercial opportunities for renewable jet fuel market

- Early adopters wishing to help create a market for reduced GHG emission aviation fuels

- Niche markets in specific favorable environment (regional regulated environment, captive fleets)

2015 2020 2025

● Efficiency - Maximum theoretical yield =

- S. cerevisiae native central metabolism + farnesene

synthase

- Assuming no sugar goes to biomass or to

“maintenance”

● Speed - Maximum theoretical productivity =

- Aerobic, oxygen-limited, fed-batch fermentation

process

- O2 delivery


HOW ARE WE MAKING THE FUEL READY FOR MARKET?

● Intensive Total sponsored, co-managed R&D program ongoing at Amyris

to hit targets that will reduce costs at scale

● Additionally we are looking at partnering on lignocellulosic feedstock

valorization technologies to implement when R&D is ready

Caspeta and Nielsen, 2013, Nature Biotech


THANK YOU


fuels workshop case study #1...-early adopters wishing to help create a market for reduced ghg...

Documents